Voxel is a term used in 3D to describe the amount of capacity or space a 3D object occupies. Voxels are useful for representing regularly-sampled spaces that are dissimilarly filled.
Voxelization is the act of converting a 3D geometric object into a set of voxels that closely approximates the input mesh. This process is similar to the rasterization process in 2D.
In 3ds Max you can apply the voxelization any time after you have applied skin, and to a selected part of the mesh.
The process essentially converts a mesh (or meshes) into voxels based on a given resolution. It then does a geodesic measurement within this voxel structure to find the nearest joint to any given vertex. This is much more reliable and predictable than the traditional method, which just does a simple linear distance measurement.
The Voxel binding method lets you select multiple meshes, treating all shapes as a single volume and giving continuous weighting across the geometry. This method voxelizes the input geometry to calculate binding weights derived from the geodesic distance between voxels on the skeleton and the mesh. Voxel binding is designed to work with meshes that may contain non-manifold, non-watertight, intersecting triangles or are comprised of multiple connected components. To be used effectively, two requirements need to be respected: